Dacian Gold (ASX:DCN) has announced an updated resource estimate at its Mt Morgans gold project in Australia. The updated estimate now contains just in excess of 3 million ounces of gold at an average grade of 2.2 g/t which is an increase of 10% in the average grade which should have a very positive impact on the economics of this project.
Dacian will use this 3 million ounce resource estimate as the basis for a scoping study which could be released any day now. This scoping study will predominantly focus on an open pit scenario at Jupiter (which has an average grade of 1.3 g/t) as well as an underground scenario at Westralia and Transvaal, which has an average grade of respectively 5.1 g/t and 5.2 g/t.
The economics of the scoping study will probably be quite positive as the weak Australian Dollar really is working in Dacian Gold’s advantage.
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Disclosure: The author holds no position in Dacian Gold. Please see our disclaimer for current positions.
